Published on Nov 2nd, 2022 |

The SEC announced Today, November 2nd, that they have adopted Amendments to Form N-PX. Learn more about the effective date and the new Rule here.

SEC Releases

Brief Introduction

The SEC announced Today, November 2nd, that they have adopted Amendments to Form N-PX.

This will enhance the proxy vote reporting for Mutual Funds, ETFs, and certain other Registered Funds.

When Is The New Rule Effective?

When Is The New Rule Effective?

  • New Rule is effective on Monday, July 1st, 2024.
  • The SEC considered time in this instance, and will require the first reports on amended Form N-PX to be filed by August 31st, 2024.
    • The report would cover the period of July 1st, 2023 to June 30th, 2024.

Who Does This New Rule Apply To?

Who Does This New Rule Apply To?

  • Mutual Funds
  • ETFs
  • Certain other Registered Funds

Overview of the New Rule and Takeaways from the SEC

Overview Of The New Rule And Takeaways From The SEC

  • Funds’ proxy voting records will be more usable and easier to analyze for investors improving their ability to monitor how their funds vote and compare different funds’ voting records.
  • Institutional Investment Managers will now be required to disclose how they voted on executive compensation, fulfilling one of the remaining rulemaking mandates under the Dodd-Frank Wall Street Reform and Consumer Protection Act.
  • SEC Chair, Gary Gensler, touched on the importance of the new Rule for Investors, which focuses on the SEC’s continued mission of Investor Protection.
  • Funds and Managers will be required under the amendments to categorize each matter by type and, where a form of proxy or “proxy card” subject to the Commission’s proxy rules is available, tie the description and order of voting matters to the issuer’s form of proxy to help investors identify votes of interest and compare voting records.
  • Reports must be organized, and Funds and Managers will be required to use a structured data language to make the filings easier to analyze.
  • Disclosing the number of shares that were voted or instructed to be voted and the number of shares loaned and not recalled and thus not voted, will be required to disclose by Funds and Managers.

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